Miltiadis Drandakis’s Reviews > The Truth About Markets: Why Some Nations are Rich But Most Remain Poor > Status Update

Rich states are the product of centuries of coevolution of civil society, politics and economic institutions.

A partial understanding of a complex reality is better than the reassurance of false universal explanations.

Endorsement of market economy with the prerequisite of disciplined pluralism and incentive compatibility.

Transactional and transformational employment. In market economies there is a need to make transactional employment more efficient.

Autonomous management combined with audit and accountability.

Market economy is characterised by information asymmetry and lack of incentive compatibility.

Disciplined pluralism with strict audit and accountability.

Market economy established disciplined pluralism and dealt with problems of incentive compatibility.

Discipline in the form of error recognition not punishment.

As soon as there is no pluralism and discipline (features which often occur in government), all efforts collapse.

Distinction between hedonism and happiness.

The crew that values the practice of fishing is more financially successful than the crew which is organised in pursuit of financial goals.

The purpose of market is the production of goods and services and profit is the means. Not the opposite !

To prevent corporate and political corruption is a matter of institutional design.

The difference between honest and corrupt public administration and business is not the result of difference of rules between them.

The integrity of an institution is the product of the values of those who work within it not only of its corporate governance.

Redistributive Market Liberalism and American Business Model compared.

Reasons and assumptions of each and how they work (or fail) in reality.

Advantage of representative democracy over participative. Comparison of capitalism vs social democracy .
France as a social democracy and its advantages and disadvantages . Absence of disciplined pluralism (eg trial and error). Characteristic of social democracy: Maintain consensus regardless of consequences.

Introduction of American Business Model :

Self Interest Rules

Market fundamentalism

Minimal State

Low Taxation

Market economies are characterised by economic, social and political institutions as well as disciplined pluralism.